And Then There Were Ten

Prior to two years ago, no state offered its families the benefit of choosing their children’s school—either public or private—using state education dollars. As of this week, North Carolina became number ten to do so and Texas is close to becoming number eleven. That means that over 7 million children, out of about 50 million K-12 students in the United States, can now choose a school or education setting that fits them. If Texas joins the group, that number will nearly double.

Universal school choice—which is what we call it when all families can choose a school, not just those who can afford private schools or afford to move to a “good” school district—is having an interesting political movement. Bipartisan efforts have led to many of the recent universal choice programs. The concept that a child might find themselves in a school that is not working well for them seems to cut across party lines. Divisive issues such as vaccines, curricula, and bullying (particularly of LGBTQ students) also make it easier to understand why children and families might feel trapped by school assignment policies.

Those invested in the traditional public school system have fought hard against opening up the system to choice. Many still cling to the idea that one school or one district can serve every need equally well. Most children probably fall into some range of being able to adapt (though not necessarily thrive) to whatever is offered at their neighborhood school. But should we continue to kid ourselves that the system will adapt to support those students who can’t seem to learn in their neighborhood school or who dread going there in the morning?

North Carolina families have just become entrusted with a big responsibility—taking ownership of their children’s education instead of accepting the default. They join families in Arkansas, Oklahoma, Iowa, Indiana, West Virginia, Utah, Arizona, Florida, and New Hampshire. Don’t Missouri families deserve that trust?

The Taxman Confuseth

Some Missouri counties are moving forward with passing property tax freezes for seniors. This is unsurprising, as it is a classic example of something that is smart politics but poor policy. Giving one sector of the population—senior citizens (and the wealthiest sector at that)—a special tax deal is a terrible idea. But that is not actually the point of the blog post.

Counties are creating their own special rules for the tax freezes, and the fact is they simply have no authority to do that. They may be able to do whatever they want with the property tax revenues for the counties themselves (or the independent City of St. Louis), but these changes affect other entities such as school districts and municipalities.

Not all of the changes counties have included in their bills are necessarily bad (in that they may have made a bad idea slightly less bad) but a county can’t change the authority the state gave it to collect and distribute tax money for other taxing districts, like schools.

Jackson County passed an ordinance limiting the tax freeze to those with homes valued at less than $550,000. Camden County passed a senior tax freeze, and county officials stated that  improvements to the home that resulted in more than a 50% increase in assessment will trigger a reassessment and, presumably, a tax increase. It speaks to how poorly Senate Bill (SB) 190 (the bill in the Missouri Legislature authorizing the senior tax freeze) was drafted that it does not address what happens if senior citizens make substantial improvements to their home after they receive the tax freeze. Common sense would lead one to believe that the valuation and taxes are changed in that case, but maybe not?

The City of St. Louis has proposed a bill (but it has not passed yet) that makes significant changes to the eligibility rule, including raising the age to receive the tax freeze to 65. Those changes aren’t even bad ones (mostly), but they are not allowed by the state law. This article states that Greene County passed an ordinance limiting the tax freeze to those actually receiving social security, not just those eligible for it, but I don’t see that in the ordinance so I am not sure that is correct.

As an aside, now that St. Louis County had commendably rejected the freeze but Camden County (Lake of the Ozarks area) has passed it, I am intrigued by the question of how many St. Louis County residents with second homes at the lake will change their primary address to Camden County. (You can only get the tax freeze on your primary residence, not multiple homes.) Remember, residence is mostly a matter of intent. If you “intend” for your residence at the lake to be your primary house—and you at least do the bare minimum and register to vote there—it is just about as easy as that.

These various bills from counties are going to invite legal challenges, and I, for one, look forward to that happening.

And Then There Were Three: Blue Springs Joins Jackson County Property Tax Lawsuit Party

First it was Lee’s Summit and Independence initiating legal action against Jackson County for the county’s uneven and hamfisted property tax reassessment rollout. Now, Blue Springs is joining the litigation party.

Is it Johnny-come-lately political theater? Is it a principled beef against higher taxes on behalf of citizens? The court will decide!

Blue Springs will join one of its neighbors [Independence] and become the third city suing Jackson County over property tax assessments. . . .

“The mayor and City Council are authorizing legal action to ensure the residents of Blue Springs receive a fair and consistent process for the assessment of real property in compliance with state law,” the City Council said in a statement Thursday. . . .

Last month, Auditor Scott Fitzpatrick said his office’s whistleblower hotline has received complaints about significantly higher property assessments, not being able to get through the phone line, and software company Tyler Technology making decisions it might not be qualified to make.

The lawsuits by the cities are in addition to the class action lawsuit filed privately by residents on similar issues, asserting (in short) failures of notice and process by the county. For example, the Lee’s Summit suit asserts that the state’s requirement that a reassessment be the result of a physical inspection was not met for this year’s reassessment, and the Independence suit asserts that the county failed to meet a variety of deadlines, among other statutory violations.

Whether anything comes of this stack of lawsuits remains to be seen, but the fact remains that property tax reform should be a priority for legislators and county leaders in 2024, so that future reassessments will be predictable and reasonable for Missourians statewide. As for Kansas City, my colleague David Stokes would remind policymakers that the constitutional exemption that allows the Kansas City public school district to not roll its tax rate back as property assessments increase is a major issue that should be grappled with sooner, not later.

Taxpayers should demand larger rollbacks than Hancock Amendment requires

A version of the following commentary appeared as a letter to the editor in the Columbia Missourian.

Earlier this year, Missouri homeowners received their reassessment notices on the value of their property. For many homeowners, the new values were quite a shock. In Jackson County, for example, the average assessment increase was 30 percent.

Missouri’s Hancock Amendment is supposed to require tax rate rollbacks as assessed values increase. Reassessment is not supposed to be a tax increase. However, the high inflation of last year allows local governments to roll back rates far less than usual, if at all. Columbia announced it was keeping its city tax rate exactly the same, despite an eight-percent average valuation increase in Boone County. Don’t let your county or other local government do the same.

In September, counties throughout Missouri are setting their tax rates for 2023. Many of them are seeing large increases in the assessed valuations within their boundaries. Missouri taxpayers need to demand that their counties—and other taxing districts within certain charter counties—roll back rates to offset the otherwise large property tax hikes people will see later this year. Yes, this means local governments should roll back rates even more than is required by Hancock.

Large increases in assessed valuations don’t have to translate to large tax increases, but they will if local officials keep their tax rates the same or lower them by the bare minimum required. High inflation shouldn’t be an excuse to hammer taxpayers with large tax hikes. Taxpayers deserve—and should demand—better treatment from their county officials and other local governments.

 

Royals Put Off Stadium Decision Another Month

Now that it’s almost Christmas, I can’t help but compare the latest news about the Kansas City Royals to a holiday classic, White Christmas. For younger readers, White Christmas is about two entertainers (Wallace and Davis) who try to help an old friend’s ski lodge. As the movie pivots toward its conclusion, Wallace abruptly leaves dinner, inspired by something Davis has just told him. Davis, flummoxed, turns to another friend:

Phil Davis: [sighs] I don’t know what he’s up to, but he’s got that Rodgers and Hammerstein look again.

Betty Haynes: Is that bad?

Phil Davis: Not bad, but always expensive.

I’m afraid things are about to get more expensive with the Royals:

The Royals had previously announced a decision on a new Kansas City ballpark by the end of September. Now, as of Sept. 21, the team is looking to push off a decision as negotiations continue with both Jackson County and Clay County officials over the cost and funding of the projects. If the team goes downtown, the new ballpark would be located in the East Village near the downtown loop, on a 27-acre site bounded by 8th Street to the north, 12th Street to the south (where the main entrance would be located), Charlotte Street to the east to Cherry Street to the west; if the team does go with North Kansas City, an 18th Avenue and Fayette Street ballpark location would be part of the 90-acre site. The target date for both locations: 2028.

The fact that negotiations are continuing with both counties is concerning, precisely for the reason Quentin Lucas mentioned at the outset when Clay County’s bid was announced: the longer this bidding war goes on, the worse served local taxpayers are going to be. It’s hard to envision a circumstance where longer negotiations would decrease the amount of money shoveled over to the Kansas City Royals at the end of this process, so moving the decision date from late September to late October is a very unwelcome development.

Again, no public money should be going to a project like this, but if it is, it would be far better for that decision to be made sooner and not later. The decision coming later than was promised should concern all taxpayers.

Welcome to “Kensas City”: Barbie-Themed Streetcar Wrap Costs Taxpayers $25,000

Are the Underpants Gnomes running the Kansas City Streetcar Authority (KCSA)? Hot on the wheels—pardon, hot on the heels—of the news that Kansas City’s riverfront streetcar extension will be going way, way over budget, we now find out that the KCSA has a very nuanced approach to making the streetcar make anything resembling sense. My best guess at the latest gnomish rationale is as follows:

Phase 1: Build the Kansas City Streetcar and make it free to ride.

Phase 2: Spend $25,000 to wrap a streetcar in a Barbie theme:

Kansas City, Missouri, unveiled a Barbie-themed streetcar, dubbed the “Dream Streetcar” earlier this month. The streetcar is decked out in familiar bubblegum-pink wrapping and even rewrites the city’s name as “Kensas City.” A lucky passenger can even choose a seat decked out to resemble characters from the recent Barbie film, like “Stereotypical Barbie, President Barbie, Cowboy Ken, and even Allan.”

Oh, and the whole thing cost taxpayers $25,000.

According to records obtained by KCUR, Kansas City’s NPR affiliate, the hefty public spending is due to the fact that the Dream Streetcar is not actually a sponsored ad for the blockbuster Barbie movie that premiered in July. Instead, it’s a project by the Kansas City Streetcar Authority (KCSA) to increase ridership, even though the streetcar is free to ride.

Phase 3: . . . Profit?

I’m of course kidding about “profit” even being a consideration here—this is government after all—but it is off-putting to see precious taxpayer resources being spent so frivolously. Ridership numbers on the streetcar have no bearing on anything except maybe the egos of city officials. Hit the link, too, for quotes from yours truly and Show-Me Institute alumnus Patrick Tuohey, now at the Better Cities Project.

How We’re Writing Off an Entire Generation with Michael Petrilli

Susan Pendergrass speaks with Michael J. Petrilli about his recent op-ed featured in The New York Times, titled ‘We Can Fight Learning Loss Only With Accountability and Action’.

Listen on Apple Podcasts 

Listen on SoundCloud

Michael J. Petrilli is president of the Thomas B. Fordham Institute, research fellow at Stanford University’s Hoover Institution, executive editor of Education Next, editor in chief of the Education Gadfly Weekly, and host of the Education Gadfly Show podcast. An award-winning writer, he is the author of The Diverse Schools Dilemma, editor of Education for Upward Mobility, and co-editor of How to Educate an American and Follow the Science to School. An expert on charter schools, school accountability, evidence-based practices, and trends in test scores and other student outcomes, Petrilli has published opinion pieces in the New York Times, Washington Post, Wall Street Journal, Bloomberg, and Slate, and appears frequently on television and radio. Petrilli helped to create the U.S. Department of Education’s Office of Innovation and Improvement and the Policy Innovators in Education Network. He lives with his family in Bethesda, Maryland.

Produced By Show- Me Opportunity

To Nobody’s Surprise, Riverfront Extension of Kansas City Streetcar Going over Budget

It’s the viral crossover no one asked for and no one needs—high inflation and government waste. But here in Kansas City, it’s a mashup we’re getting anyway with the extension of the streetcar to the riverfront.

The question: how much over the $34.9 million budgeted for the project could 0.7 miles of rail cost taxpayers? The answer: another $10 million, and possibly more:

“We determined that both of the (contractors) were qualified, the technical proposals were sound, but their costs were above the estimate, and both of their costs were above the budget, significantly so,” KCATA Deputy CEO Dick Jarrold said during a Tuesday presentation to the agency’s Finance Committee. The KCATA is one of four groups heading the riverfront streetcar project, alongside Kansas City, the Kansas City Streetcar Authority and Port Authority of Kansas City. . . .

The Mid-America Regional Council (MARC) has authorized about $9.6 million in additional federal dollars for the riverfront streetcar through the Surface Transportation Block Grant program, and a MARC committee has recommended an additional $1 million in federal Carbon Reduction program grant funds. The programs require local matching funds, which Jarrold said are anticipated from Port KC and the Streetcar Authority in an as-yet undetermined amount. [emphasis mine]

Keep in mind that the estimate for the original plan to extend the streetcar to the riverfront was $22.2 million, meaning the apparent final (?) cost of the line is on course to double that estimate, with or without the local match considered.

Yet, that’s been the track record for this toy train for over a decade now. I wrote here in 2011, 2012 and 2013 and for Forbes in 2014 that the Kansas City streetcar was a profligate and bad idea. And yet, despite the many opportunities to prove naysayers wrong, the streetcar remains a remarkably poor fiscal and policy decision to this day.

An Airing of Grievances about Sewer Sales in Festus

I have a lot of problems with how the sewer system sale is being handled in Festus, and you people are going to read about it. (Crystal City is involved here, too, but that doesn’t flow with my reference.)

For some background, Festus and Crystal City—two adjoining cities in Jefferson County—are planning to sell their shared municipal sewer system. That, by itself, is a good thing they deserve credit for. However, the cities never went out for open bids on the project. They negotiated behind the scenes with only one other entity, the Jefferson County Public Sewer District (JCPSD), on the sale. They went public in June with the proposal and have entered into a formal arrangement to continue negotiations with the JCPSD. (Nobody has finalized anything yet, to be clear.)

JCPSD is offering $5 million for the system. While that may be a fair price and while JCPSD seems fully capable of running the sewer system for the community, how do the cities know if it is the best deal if they don’t accept other bids?

I filed a sunshine request with Festus last month for public records regarding the potential sale. I asked for the available records. I received the response last week. The city’s response is utterly worthless. There is nothing in it beyond copies of prior ordinances authorizing the sewer system, recent bills authorizing the city to negotiate with JCPSD, and copies of public notices. There is not one e-mail in the response, which means either no city officials or employees ever sent an e-mail on this topic over the past year—or they are claiming every e-mail is privileged. When we asked why there were no e-mails in the response, this is what they wrote me:

The City has reviewed the records within its custody which would be responsive to the requests. In response to those requests, we have provided those records which are responsive and which are open under the Missouri Sunshine Law. As noted in the City’s letter responding to the requests, certain records of the City were withheld as closed records, pursuant to Section 610.021, RSMo (1), (2), (12), and (17).

In fact, total secrecy was demanded by JCPSD and the two cities right from the beginning, despite the fact that openness, not secrecy, would have likely led to more bids and a better deal for the cities and taxpayers. Here is section eleven from the initial letter from the JCPSD to the cities dated November 17, 2022, but not made public until much later:

Without the prior written approval of the other parties, unless otherwise required by law, neither the JMUC, District, nor Cities will disclose the existence of this letter or any information concerning the transactions contemplated in this letter, to any third party, other than such party’s attorney, accountant, or professional advisor who needs to know such information to perform his or her duties in connection with this letter or intend or the transactions contemplated by this letter and who shall first agree to the confidentiality of this letter.

This has been anything but an open and transparent process. The public hearings on this matter were held shortly after the proposal was first announced, and the two city councils voted to approve the memorandum of understanding with JCPSD the exact same night as the public hearings. (Officials voting the same night is always a red flag that a public hearing is a dog-and-pony show.) The cities took no other bids or proposals, despite being well aware other entities would like to bid on the sewer systems. Now they are hiding behind legal exemptions to not share any records on the deliberations and discussions of the sale.

Festus and Crystal City selling their sewer system to a larger organization, public or private, with more resources is a great idea. Going about it all in this manner, however, is terrible government. It may be legal, but it is wrong.

Support Us

The work of the Show-Me Institute would not be possible without the generous support of people who are inspired by the vision of liberty and free enterprise. We hope you will join our efforts and become a Show-Me Institute sponsor.

Donate
Man on Horse Charging